MKTM028

Marketing Audit

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Contents
Macro analysis.................................................................................................................................3

PEEST analysis............................................................................................................................3

Micro analysis..................................................................................................................................4

Market..........................................................................................................................................4

Customers....................................................................................................................................4

Competitors..................................................................................................................................4

Internal analysis...............................................................................................................................4

Strategy Review...........................................................................................................................5

Function Review..........................................................................................................................5

Productivity Review....................................................................................................................5

Summary..........................................................................................................................................5

TOWS Matrix..............................................................................................................................5

Key Challenges............................................................................................................................7

Reference.........................................................................................................................................9

Appendix 1 - Company Overview.................................................................................................11

Appendix 2.....................................................................................................................................13

Appendix 3.....................................................................................................................................16

Appendix 4.....................................................................................................................................21

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Macro analysis

PEEST analysis

The PEEST analysis has helped in identifying all the political, environmental, economic, social
and technological factors that affect the business operations of the company, General Motors.
From the analysis, it was found that the economic, technological and environmental factors have
a high amount of influence in the company. 

Economic: the economy of the market in which the company operates has a significant impact on
the business performance of the company in that market. General Motors mainly has its
operation in developed countries (Skeel Jr, 2015). However, the recent outbreak of COVID -19
and the Brexit in the last month will adversely affect the global markets and especially the
European and Asian markets, where the company is already struggling with its performance. The
host’s country America, is shifting its trade policies and environmental rules and regulation
under Trump’s administration, which may now compound the economic adversities.

Environment: the environmental changes and the regulations on the environment is another key
factor which affect has affected the company. The people’s as well as the government’s all
around the world are now trying to be more environment-friendly and minimising their carbon
footprint. People have started to purchase low-emission vehicles, and governments have started
to frame new rules and regulations to protect their environment. The company immediately need
to see this change in the mindset of the world. The company should introduce more electric
vehicles, low-emission vehicles and should participate more in social responsibility programs to
protect the environment (Wolfram and Lutsey, 2016). Moreover, technological changes and
modern technologies have a phenomenal impact on the company. Customers of the modern
world desire for the best technology in their vehicle and these technologies can have a great
influence on the customer’s buying behaviour as well. Autonomous and self-driving cars have
started to dominate the market. The company should identify these market trends and can
collaborate with a technological company to introduce more technological features in their
vehicles (Bimbraw, 2015).

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Micro analysis

In this section, a micro analysis on the company, General Motors is done using tools such as
Porter’s five forces, customer journey map; competitors profile matrix and perceptual mapping.
With these tools, the competition in the market, customer’s buying trends and process,
competing companies pricing and quality performance can be measured.

Market

The porter’s five forces were beneficial to understand the different threats and opportunities in
the markets operated by the general motors. The rivalry exhibited by the competing company in
the market is significantly high against the country. The company should frame effective
strategies to stay more competitive in the market comments Bloomfield, (2017). The threat of
new entrants and substitutes and the bargaining power of the customers were found to be
moderate against the company. In contrast, the bargaining power of suppliers was found to have
the least effect on the company.

Customers

The company usually manufacture products for high-end users with more than average pricing
and performance than other companies. The company primarily focuses on customers between
25-45 years of age with capacity to afford their high-end vehicles. The company provides its
vehicles through four main brands, namely, Chevrolet, Buick, Cadillac, and GMC (General
Motors, 2019). Moreover, the company has sports cars, SUVs and sedan model cars. The
company need to start focusing more on electric vehicles with better technologies than their Volt
and Bolt, and this can help in gaining more customers

Competitors

The company faces significant competition in most of the market it operates. Among the top
automobile companies, Ford, Tesla, Toyota, and Fiat are the companies which possess potential
threat for General Motors. Most of GM’s competitors are well established and has the potential
to take control of the market. The Toyota and the newly emerged Tesla are the companies which
deliver maximum competition to the company (Hashmi and Biesebroeck, 2016).

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Internal analysis

Strategy Review

Analysing through the strategies being implemented by G.M. in its target markets, it could be
studied that the company follows a wide range of product lines with some premium brands in the
product portfolio. However, it is also a fact that the company essentially utilises the cost
leadership strategy for its products and services for the customers. There are no specific
differentiation strategies being executed by the company: however, plans to overcome Chevrolet
by Opal is being implemented by the company (Jacobs, 2019). In order to gain value from the
customers, the company will have to focus significantly on differentiation. Vauxhall is observed
to be the most competing brand of Gneerela motors across Europe. Moreover, Cadillac is to
extend its business in European regions as well.

Function Review

Analysing through the marketing mix of the company, it could be understood that the pricing
strategy of the company is mainly based on the market and even though premium brands exist in
its product portfolio. Moreover the marketing functionalities of the company is done solely
through advertising. Both online media and conventional methods of marketing are utilised by
the company to promote its products among consumers. Moreover, the sales of the products are
made through its dealerships and physical places (Momen et al., 2016).

Productivity Review

Regarding the productivity of the company, through the CBBE model, it can be studied that the
company is featured to be highly versatile and excellently influencing the consumers. Providing
high quality and cool designs through a reputable brand, General Moros has been able to conquer
the minds of many consumers. Moreover, the best performing brand of the company is observed
to be Cadillac, Chevrolet, and Buick (Owen and Inman, 2017).

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Summary
TOWS Matrix
Strength Weakness
 International business  High-cost structure
 New vision and  Brand dilution
strategy  Sensitive tp oil prices
 Most significant  Minimal
production in the diversification
market  Bureaucratic culture
 Strong management  Product recalls (Owen
team and Inman, 2017)
 Strong product  Economic inventions
portfolio Green car development
 Clear understanding of
the home market
 Well performing
brands
 Huge employee
workforce with highly
skilled and talented
engineers (Jacobs,
2019)
 Excellent R&D
department
 Minimal complaints in
service
Opportunities SO strategies W.O. strategies
 Increasing demand for  Implement new energy  Manufacturing and
hybrid electric vehicles usage with product production facilities
 Opportunities in the development through can be transferred to
emerging markets the contribution of locations with
 Growing economy of R&D relatively lower labour
the car market  Vast brand portfolio costs.
(Momen et al., 2016) and equity, the  Salesforce and export
 Alternative energy use company can expand skills can be
 Continuous global its business globally strengthened.
expansion into emerging markets.  Compatible models for
 Low-interest rates  With the maximum varied prices can be
 Creating new vehicle exploitation of the developed.
styles and models largest manufacturing
units and excellent
R&D department of
the company, new
models and designs
can be developed

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 Threats S.T. strategies W.T. strategies
 Reduced demands for  Alternative material  Collaborations with the
light vehicles can be utilised to major competitors
 Increasing prices of encourage eco-friendly  Manufacturing of
raw materials practices automobile parts
 Strict regulations and  Cars can be products in  Create a flexible
standards of emission significant levels for product line to reduce
 Foreign manufacturers foreign competitor in the
competitive strategies markets\Advanbced industry
(Inman et al., 2017) design technology can
 Increasing fuel prices be exploited to sustain
 Competitors’ growth with the competition
 Increased health care  Fuel injection and fuel-
costs efficient diesel engines
 Increasing supply costs can be used to improve
the fuel consumption
of vehicles

Key Challenges
 The significant challenges that each player in the automobile industry of the Uk face is
the issues that are arising as part of the Brexit problem. There are numerous tensions and
challenges being confronted in the global trade policies and other economic aspects. It
has become extremely difficult for these countries to carry out its global business with the
never-ending policies being issued as part of the issue of Brexit within the U.K.
 Another significant challenge is the highly increasing demand for hybrid and electric car
vehicles for consumers. It has become a critical matter of concern for all the competitor's
in the automobile industry of the U.K. to exhibit their knowledge and expertise to
succeed with the advent of electric car vehicles in the rods across the U.K (LeClair,
2018). Moreover, the energy consumption also has to be made minimal and optimal top
ensure that consumers are not weakened at any point of its service
 Another challenge being faced by General Motors in their being in the regulation
standards being more stringent and strict for the emission of gasses from the vehicles
(Stefanov and Hristov, 2019). It has also been a very imperative aspect being considered
by the consumers as well regarding the emission standards as the common people are
very much bothered and responsible about the environmental pollution that occurs
through these hazardous emissions. 

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8
Reference

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Bimbraw, K. (2015) July. Autonomous cars: Past, present and future a review of the
developments in the last century, the present scenario and the expected future of autonomous
vehicle technology. In 2015 12th International Conference on Informatics in Control,
Automation and Robotics (ICINCO) (Vol. 1, pp. 191-198). IEEE: New York.

Bloomfield, G.T. (2017) The world automotive industry in transition. In Restructuring the global
automobile industry (pp. 19-60). Routledge: London.

Chan, S. ed. (2016) Foreign direct investment in a changing global political economy. Springer:
London.

De Stefano, M.C., Montes-Sancho, M.J. and Busch, T. (2016) A natural resource-based view of
climate change: Innovation challenges in the automobile industry. Journal of Cleaner
Production, 139, pp.1436-1448.

General Motors(2019) General Motor’s annual reports available at:

http://www.annualreports.com/Company/general-motors (accessed: 20/03/2020)

Gieras, J.F., Wang, C. and Lai, J.C. (2018) Noise of polyphase electric motors. London: CRC
press.

Goolsbee, A.D. and Krueger, A.B. (2015) A retrospective look at rescuing and restructuring
General Motors and Chrysler. Journal of Economic Perspectives, 29(2), pp.3-24.

Guajardo, J.A., Cohen, M.A. and Netessine, S., (2016) Service competition and product quality
in the US automobile industry. Management Science, 62(7), pp.1860-1877.

Hashmi, A.R. and Biesebroeck, J.V. (2016) The relationship between market structure and
innovation in industry equilibrium: a case study of the global automobile industry. Review of
Economics and Statistics, 98(1), pp.192-208.

Huang, T. and Liu, Q. (2015) Strategic capacity management when customers have boundedly
rational expectations. Production and Operations Management, 24(12), pp.1852-1869.

Inman, R.R., Frick, M.C., Hitchman, T.D., Muiter, R.A., Owen, J.H. and Takasaki, G.M. (2017)
Optimizing New-Vehicle Inventory at General Motors. Interfaces, 47(5), pp.396-410.

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Jacobs, A.J. (2019) General Motors in Spain, 1925–2017. In The Automotive Industry and
European Integration (pp. 225-247). Palgrave Macmillan, Cham.

LeClair, D.R. (2018) General Motors: Globalization, Disruption, and Sustainability. In Business
Despite Borders (pp. 165-177). Palgrave Macmillan, Cham.

Momen, F., Rahman, K.M., Son, Y. and Savagian, P. (2016) Electric motor design of general
motors’ Chevrolet Bolt electric vehicle. SAE International Journal of Alternative
Powertrains, 5(2), pp.286-293.

Nagy, J. and Jámbor, Z. (2018) Competitiveness in global trade: The case of the automobile
industry. Economic Annals, 63(218), pp.61-84.

Owen, J. and Inman, R. (2017) Operational Research at General Motors. Impact, 3(1), pp.26-31.

Skeel Jr, D.A. (2015) From Chrysler and General Motors to Detroit. Widener LJ, 24, p.121.

Stefanov, S. and Hristov, R. (2019) General Motors 6T automatic gearboxes-problems and

methods for their removal. In IOP Conference Series: Materials Science and Engineering (Vol.
614, No. 1, p. 012010). IOP Publishing.

Victor, P.A. (2017) Pollution: Economy and environment. Routledge: London.

Wolfram, P. and Lutsey, N. (2016) Electric vehicles: Literature review of technology costs and
carbon emissions. The International Council on Clean Transportation: Washington, DC, USA,
pp.1-23.

Yu, K.D.S. and Aviso, K.B. (2020) Modelling the Economic Impact and Ripple Effects of
Disease Outbreaks. Process Integration and Optimization for Sustainability, pp.1-4.

Zhu, Q. and Shah, P. (2018) Product deletion and its impact on supply chain environmental
sustainability. Resources, Conservation and Recycling, 132(January), pp.1-2.

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 Appendix 1 - Company Overview

Company Name: General Motors Company

Industry / Country: Automotive/America

Company Vision/ Mission The vision of General Motors is “to become the world’s most valued
Statement: automotive company”.

The company’s mission is to build brands that inspire passion and loyality
of customers by not only bringing modern technologies but also by
serving the community in which we live in and work today”

164,000 work for the company all around the world ( General Motor,
Company Size (Employees):
2019)

Company Turnover (2018): US$137.2 as per the annual report of GM,2019 ( General Motor, 2019)

 Ford
 Tesla
Key competitors
 Toyota
 Fiat

Customer Demographics: Customers of General motors is generally aged between 25 -45, the
company mainly focus on high end customers and market segments. The
company has operation worldwide expect in some Asian and African
countries such as India and Sudan. Most of the vehicle produced are of
luxurious quality and the company primarily aims at customers who can

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 afford such luxury ( General Motor, 2019).

Key Products/ Services:  Automobiles

 Automobile part
 Commercial vehicles

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 Appendix 2
Appendix 2A: PEEST analysis

Factors Impact Significa Time Implications for strategy

nce

Political  The governmental pressure to Moderate Long The company should be aware
depend more on public term about the changes in the
 Increased tax transport to protect environmental policies of the
policies on environment and new policies governments in the major
combustion to reduce the usage of country it operates (Goolsbee
vehicles by most of combustion vehicles are and Krueger, 2015)
the governments all possible threat for the
around the world company
(Chan, 2016) .  The political stability n most
 promotion of public of the country its operates is a
transport by favourable sitation for the
government. company
 Political stability in
most of the market
the company
operates

Economic  A great economic high Long The company should frame

recession is expected in term effective strategies to work in
 Increased the future due to outbreak the economically destabilised
competition in of the COVID 19 and the markets in the world.
major markets economic instability in
of the world. European countries due to
 The Brexit, the the Brexit will compound
pandemic the effect in Europe.
caused by the 
COVID 19 will
cause economic
instability, (Yu
and Aviso,
2020)

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Social  The shifting trend to moderate Long The company should focus
electric and autonomous term more into the production of
 The increased vehicles is an opportunity low–emission and eco-friendly
dependence on low  The increased demand for vehicles.
emission, electric used and ride hailing
vehicles service and used cars are
 Increasing demand possible threat for the
for vehicles sharing company.
and used vehicles.
(Wolfram and
Lutsey, 2016)

Environment  New and shifting high long The need to develop eco-
governmental friendly vehicles and to reduce
 Rising concerns environmental rules and the carbon emission is at the
around the world regulation will cause peak. The company should
about the distoration both develop appropriate strategies
automotive production and selling of or will lose loyal customers
emission. (Victor, the product. Moreover, and governmental support.
2017)  people are more now
 The pressure from attracted to companies
the government to who protect their
reduce the environment
automobile
emission and new
environmental
regulations and
laws

Technology  The demand for moderate Long The company should try to
autonomous and electric term include technologies and
 Increasing demand vehicles are ever effects promote the production of
for self-driving cars increasing this is an electric and autonomous
(Bimbraw, 2015). opportunity for the vehicles (Bimbraw, 2015).
 Increased demand company
for modern  The rising technology
technologies in the development and the
vehicle. demand for most modern
technologies in he vehicle
can be a threat

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 Appendix 3
Appendix 3A: Porter five forces

Forces Significance Impact

Threat of new moderate  As the automobile industry is evolving each day with technology.
entrants Chances for new entrants with better technologies and low emission
can be a potential threat (De Stefano et al., 2016).
 High economy of scale in automobile production can be resistance to
business for new entrants (Bloomfield, 2017).
 The shift of customers to better vehicle manufactures looking for
better features and technology can have a moderate effect on the GM.

Supplier bargaining weak  General Motors’ have high raw material supply from a moderate
power population of suppliers (Goolsbee, A.D. and Krueger, 2015)
 The company’s low forward integration weakens the influence of the
supplier

Buyer bargaining Moderate  The company face moderate force from the customers has the
power company has very few substitute vehicles such as motorcycles and
other types of vehicles used for commercial and personal use.
 Numbers of individual buyers are low for the automobile industry;
this further weakens the force of customers (Zhu and Shah, 2018).
 The switching cost of customers from one automobile company to
another is moderate.
Threat of Moderate  Moderate switching cost for customers will cause moderate effects of
substitutes the company from substitutes (Huang and Liu, 2015)
 The availability of the substitutes is also moderate in the market.
However, the low varieties of substitutes are comforting factors for
the company (Hashmi and Biesebroeck, 2016).
Rivalry High  The high rate of aggressiveness shown by competitors using
innovative marketing campaigns, better technology and product
varieties are strong force of competitions (Nagy and Jámbor, 2018)
 Moderate high number of automobile firms in the market and the
pressure of market exit barriers on these firms constitute a strong
force on the company (Guajardo et al., 2016).

Appendix 3B: Perceptual Map

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 Appendix 3C: Competritor Profile Matrix

Factors   Ford Tesla Toyota Fiat

Success Factor Weight Rating Score Rating Score Rating Score Rating Score

Product quality 0.1 3.0 .30 4 0.4 3.8 0.38 3.5 .35

Product pricing 0.1 3.5 0.35 4.2 0.42 3.0 0.3 3.5 0.35

Globalisation 0.025 3.78 0.0945 2.5 0.0625 3.5 0.0875 3.6 0.09

Research and
0.05 3 0.15 4 0.2 3.7 0.185 3.8 0.175
development

Brand identity 0.075 4 0.3 3 0.225 3.9 0.292 3.6 0. 2752

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Product delivery and
0.315 4 1.26 3.2 1.008 4 1.26 3.5 1.1025
distribution efficacy

Customer
0.075 4.11 0.30825 3.6 0.27 3.88 0.291 3.8 0.285
engagement

HRM 0.035 3.67 0.12845 3.64 0.1274 3.5 0.1225 3.65 0.12775

Promotional 0.0887
0.025 3.69 0.09225 3.55 3.6 0.09 3.8 0.095
techniques 5

Supply Chain
0.05 3.9 0.195 3.65 0.1825 3.65 0.1825 3.5 0.175
efficacy

0.2587 0.2662
Market value 0.075 3.97 0.29775 3.45 3.55 3.86 0.2895
5 5

Financial growth 0.075 3.95 0.29625 3.44 0.258 3.96 0.297 3.9 0.2925

 
1 3.3945 3.8409 3.5324 3.4765
Total

Appendix 3D: Customer Journey Map

Awareness Consideration Decision Delivery Customer Engagement

and use support

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Customer Customers are Detailed Decision on Mode of Queries and Experience
activity looking for knowledge on buying the delivery is grievances on are shared
ads using the brand is product after chosen by the products
conventional accomplished comparing the are shared with
and after comparing alternatives customers customer
contemporary with all support team
channels to products of
study about alternative
the brand marketers

Customer No intentions Researching and The customer The The customer Will share
goals selecting most will be exited customer will repeatedly the
worthy product and concerned will try to contact the experiences
available in the and will try to make the company sue to the customer
market maximum no. best deal his concerns had with
of test drives with the about the new friends and
company product and family
available
service

Touch Word of Websites, Receiving a Good sales Periodic Sharing

points mouth, social marketing good service skills and checking on experience to
media and campaigns and and experience good the customer’s others
company’s advertisements during test behavioura product and its
advertisement drives and l etiquettes performance
s, reputation store visit
and brand
value

Experienc
e of
General
Motor’s
customers

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Appendix 4
Appendix 4A: BCG matrix

Appendix 4B: 4P framework

PRODUCT  Popularly known for its automobiles

 Offers automobiles in different brands
like GMC, Buick, Chevrolet, and
Cadillac.
 Also engaged in the sale of parts of its
automobiles
 Offer commercial vehicles for the use
of passengers. The automobile,
automobile parts, and commercial
vehicles together form the automotive
products.
 Additional product line of the company
is the financial services under G.M.
financial through which the company
offers financial assistance in the form
of loans to its consumers when they
purchase their vehicles.
 A low level of business diversification
is evident in the product mix of the
company, wherein the company
generates its profits through

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 transactions for automobile parts and
financial services
PLACE  The distribution of the products of
General Motors is done through its
official websites, dealerships and
automotive shows and exhibits.
 Official websites for its business
operations for each of its brands.
 Dealerships are G.M. partners who can
display G.M. products and actuate
transactions.
 Through the various automotive shows
and exhibitions, the company has been
able to extend its market reach and
potential distribution.
 The company could achieve market
penetration through its online channels
and physical places.
PRICE  General Motors follows a market-
oriented pricing strategy, along with a
premium pricing strategy.
 The market-oriented pricing strategy is
entailed in setting competitive prices
based on the existing prices of the
automobiles in the market. Through the
premium pricing strategy, the vehicles
are set with relatively higher prices in
accordance with the premium branding
of the company.
PROMOTION  Advertising is the most significant
promotional tool utilised by the General
Motors
 Employs advertising through both
online media and traditional channels
like magazines and televisions.
 Addressing the specific needs of the
customers, the company is also
involved in the direct marketing of its
products.
 Discounts and other offers are only
occasionally executed to attract
consumers.
 Moreover, promotional efforts are also
carried out in the form of supporting
and sponsoring various social and

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 charitable events and activities, thereby
exposing their social responsibility as
well.

Appendix 4C: VRIO

Resources Valuable Rare Imitable Organisation

and
Capabilities
Leadership Yes Yes Yes Yes
Employee Yes No Yes No
benefits
Information Yes No No Yes
Technology
Logistics Yes No No Yes
Brand Name Yes Yes Yes No
Research and Yes No Yes Yes
Developmen
t
Csutomer Yes No No Yes
Service

Appendix 4d: CBBE model

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